Smurfit WestRock PLC Receives Mixed Ratings from Guru Strategy

A recent report highlights Smurfit WestRock PLC's performance according to the Value Investor model. While the stock achieves a 57% rating, weaknesses in P/E and P/B ratios may impact its appeal to investors.

Date: 19-10-2024

AI Rating: 5

According to the report, Smurfit WestRock PLC (SW) has received a rating of 57% using the Value Investor model based on Benjamin Graham’s approach. This rating reflects the firm’s fundamental strengths and valuation in the Containers & Packaging industry. The model emphasizes low P/B and P/E ratios alongside solid long-term earnings growth.

The report reveals several areas where the stock meets the model's criteria:

Sector: PASS
Sales: PASS
Current Ratio: PASS
Long-term EPS Growth: PASS

However, there are critical weaknesses noted, specifically:

Long-term Debt in Relation to Net Current Assets: FAIL
P/E Ratio: FAIL
Price/Book Ratio: FAIL

The presence of failing marks for P/E and Price/Book ratios suggests that the valuation may not be attractive to growth-focused investors. The report emphasizes that a score of 80% or above typically indicates heightened interest, implying that at 57%, SW may not garner significant attention from value investors.

In summary, while Smurfit WestRock PLC demonstrates several strengths including solid long-term earnings growth, the qualitative aspects surrounding its P/E and P/B ratios alongside debt concerns may deter investors, potentially leading to changes in stock price.

Stocks: SW